The Impact of Supply Chain Management Practices on the Financial Indicators Performance of the Businesses with a Field Study of the Industrial Sector Under the Egyptian Environment

Document Type : Original Article

Author

Accounting department Faculty of Commerce Damanhur University Damanhur Egypt

Abstract

        The main objective of the research is to investigate the impact of supply chain management practices (Strategic partnerships with suppliers, customer relationship management, and the level of sharing information, and the quality of information shared) on the financial indicators performance (include Return on assets, return on investment, return on sales, return on equity, asset turnover rate, the percentage of general administrative expenses for sales, gross profit, and productivity of workers) of the businesses under the Egyptian environment, To achieve the objectives of the study the researcher depend on an analytical study of the financial statements of the study sample During two periods(three years Before and after implementation of supply chain management practices) Then  a comparison between two periods In order to know the extent of improvement or deterioration in the performance indicators is occurred. The study also relied on semi structured interviews with some of the directors of departments in enterprises under study, as well as questionnaires to try to collect all information for test the research hypothesis.  The data that was collected was analyzed by Using descriptive measurements, frequencies, relative frequencies, the Spearman correlation coefficient and simple regression analysis, The results indicate the Absence impact of these practices of supply chain management  in any measure of the financial performance indicators, hence We won't be able to reject H0, Despite all of that, participants have pointed to the importance of these practices and its role in improving the operational performance (speed of introduction new products, innovation, flexibility and cost reduction) Therefore it is probable that these improvements in performance can affect the financial performance but indirectly.
 

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